Parent Company (Tables)

12 Months Ended

Dec. 31, 2012

Parent Company [Abstract]

Balance Sheets

Balance Sheets as of December 31,
(In thousands)	2012		2011
Assets:
Investment in subsidiaries*	$	135,373	$	127,581
Cash*		4,116		3,395
Other assets		526		696
Total assets	$	140,015	$	131,672
Liabilities and shareholders’ equity:
Other liabilities	$	1,175	$	1,516
Long term debt		20,619		20,619
Shareholders’ equity		118,221		109,537
Total liabilities and shareholders’ equity	$	140,015	$	131,672

Statements of Income

Statements of Income for the Years Ended December 31,
(In thousands)	2012		2011		2010
Dividends from Merchants Bank*	$	7,607	$	7,953	$	6,901
Equity in undistributed earnings of subsidiaries*		8,721		7,832		9,705
Other expense, net		(1,743)		(1,788)		(1,760)
Benefit from income taxes		609		623		615
Net income	$	15,194	$	14,620	$	15,461

Statements of Cashflows

Statement of Cash Flows for the Years Ended December 31,
(In thousands)	2012		2011		2010
Cash flow from operating activities:
Net income	$	15,194	$	14,620	$	15,461
Adjustments to reconcile net income to net cash provided by operating activities:
Net change in other assets		170		(84)		(187)
Net change in other liabilities		(116)		66		201
Equity in undistributed earnings of subsidiaries*		(8,721)		(7,832)		(9,705)
Net cash provided by operating activities		6,527		6,770		5,770
Cash flows from financing activities:
Sale of treasury stock		18		14		10
Proceeds from exercise of stock options		280		(1)		59
Tax benefit from exercises of stock options		20		1		2
Cash dividends paid		(6,324)		(6,233)		(6,139)
Other, net		200		206		208
Net cash used in financing activities		(5,806)		(6,013)		(5,860)
Increase (decrease) in cash and cash equivalents		721		757		(90)
Cash and cash equivalents at beginning of year		3,395		2,638		2,728
Cash and cash equivalents at end of year	$	4,116	$	3,395	$	2,638
* Account balances are partially or fully eliminated in consolidation